This year, there will be numerous new laws & regulations which will impact newcomers in 2024 at provincial, federal, & territorial levels. These changes, ranging from employment & taxes to international students’ tuition, are likely to affect international students, temporary foreign workers, & permanent residents across the nation. In this blog, we will discuss new laws & regulations which will impact newcomers in 2024. So, let us begin!

New Tax Rules Taking Effect Across The Nation 

The Canada Revenue Agency is altering several tax rules this year, all of which will impact Canadian permanent residents. 

  • Tax-Free Savings Account 

On January 1, the CRA increased the annual contribution limit for TFSA by $500 – from $6,500 to $7,000 per year. This kind of savings account is significant for Canadian residents. It enables account holders who contribute money into the account to avoid being taxed on capital gains & withdrawals. 

  • Registered Retirement Savings Plan 

Although the annual percentage of income RRSP holders can deposit into their account remains steady in 2024, the CRA has increased the maximum contribution an account holder can make this year. Moreover, up from $30,780 in 2023, RRSP holders can now contribute $31,560. Well, this is a bump that will be beneficial to Canadian PRs saving for their long-term future. 

  • Canada Pension Plan (CPP) & Employment Insurance (EI) 

Every month, many members of the Canadian workforce have CPP & EI payments deducted from their paychecks. In 2024, corresponding with an increase in the maximum CPP contribution across Canada- including the Quebec Pension Plan, province’s own pension plan, more money will be deducted from paychecks accordingly. Particularly, employees in Canada will now have to pay $3,867 towards CPP in 2024. This is a year-over-year increase of $113 for those earning a minimum of $68,500 annually. This implies that employed individuals across Canada will take home slightly less money each month. 

The federal government recently declared a second CPP tax, set to begin this year. However, this tax will only affect workers whose income is above the first earning ceilings, as per Globe & Mail. As it relates to EI, premiums paid by employed residents in Canada are increasing this year, similar to CPP. From a maximum contribution for Federal EI of $1,002.35 last year, the 2024 maximum contribution will be $1,049.12 in 2024. 

Note: According to a Globe & Mail story, QPP tax rates will increase this year, as employees will pay over $4,348 into the QPP in 2024. 

  • Increase Coming To The Federal Carbon Tax

As a result of an increase in Canada’s federal carbon tax, one recent Globe & Mail story asserts that residents of Canada who use personal vehicles as transportation will pay 17.6 cents a liter of gasoline in fuel charges in 2024. This demonstrates an increase of around 3.3 cents as compared to 2023. 

This implies that Canada’s carbon tax increase will have an integral impact on household expenses. The tax will cost the average household between $377 & $911 in 2024-2025, even after rebates. 

  • Taxes Withheld From Paychecks Might Increase For Some Remote Workers 

Although the details have yet to be finalized, the Globe & Mail story asserts that remote workers across the nation could be subject to more or less payroll tax withholdings in 2024 if they reside in a province that is different from the province of employment. This is one of the new laws & regulations that will impact newcomers in 2024, wherein an employee files their income taxes, EI, & pension.     

New Financial Requirements For International Students 

For all international students with study permit applications obtained/ submitted as of January 1, the federal government has now more than doubled the cost-of-living financial requirement that applicants should display during the application process. 

In simpler terms, Canadian study permit applicants should now display that they have over $20,635 in savings. Well, this is a significant increase from the $10,000 that international study permit applicants have to display prior to the beginning of this year. 

Note: The new cost-of-living financial requirement must be alongside additional funds for covering the cost of first-year tuition & travel. 

New Changes At The Provincial Level

Another one of the new laws & regulations which will impact newcomers in 2024 are changes at a provincial level. Broken down by province, the following will highlight the changes.

Ontario 

  • Minimum Wage Increase

Presently set at $16.55 per hour, the province is expected to increase its minimum wage rate on October 1. 

New Licensing Procedures For Employment Agencies:

Starting on July 1, temporary work agencies and recruiters will require a license to assign employees to work. This is a measure that prevents the exploitation of temporary & vulnerable workers in the province. 

Quebec 

  • Out-of-province Tuition Hike

Starting this Fall, out-of-the-province English-speaking to undergraduate or professional graduate programs in Quebec’s three English-language institutions – Bishop’s, Concordia, & McGill – will see their tuition increase by around $3,000. In a move that will not impact students pursuing research-based graduate degrees, affected students will see their tuition increase from $8,992 to around $12,000, according to the Globe & Mail report. 

Note: Quebec’s government also declared minimum tuition fees of $20,000 for international students, noting that universities will retain the right to charge additional discretionary services. 

Stricter Language Criteria 

As of November 23, the Quebec government will need temporary foreign workers & international students applying through the Quebec Experience Program to reach new French-language proficiency levels, i.e., a minimum of seven for speaking & five for writing. 

Moreover, the PEQ will now require temporary foreign workers to pass a French test to renew their work permits. International students applying for immigration via the PEQ will soon be required to have either completed a program in Quebec or completed a minimum of three years of full-time secondary or post-secondary studies. 

Note: The PEQ is an immigration program for international students who have graduated from an institution in the province. This requirement will be in effect from November 23, 2024. 

Prince Edward Island 

  • Minimum Wage Increases

Presently set at $15 per hour, the province will increase its minimum wage rate to $15.40 on April 1 & then to $16 per hour on October 1. 

Nova Scotia 

  • Minimum Wage Increase 

Presently set at $15 per hour, the province will increase its minimum wage rate with inflation on April 1. Nova Scotia’s government has also indicated a plan to further increase the provincial minimum wage by an additional one percent annually. 

Northwest Territories 

  • Update To Health Benefits For Low-Income Benefits

Including such things as an income assessment to determine benefit eligibility, the territorial government has declared that a new extended health benefits policy will take effect from April 1. 

Nunavut 

  • Minimum Wage Increase

Earlier set at $16 per hour, Nunavut has increased its minimum wage rate to $19 per hour effective January 1.